Car loans with previous bad credit rating

[abbie]

My brother is looking car finance. He finished paying a previous car loan contract for a two year period last September, which I might add he was always late paying the repayments and sometimes not all the funding would be paid each month. Is there any finance/loan companies out there that will take someone one like him on with a 'sort of' bad credit rating.

 

[jake108]

abbie, this happened to me quite a few years back. I found it nearly impossible to get a loan afterwards. (I always paid the full amount due but was late for about 3 payments in total.) It took quite some time to repair my bad rating. Also I don't think there's such a thing as having a "sort of" bad credit rating. If he was late with payments and didn't always pay the full amount it won't go down well.

 

[moneyhoney]

There are some what are known as 'sub-prime' lenders who will lend you money even if bad credit history - they charge alot more though......

 

[Thrifty]

Most credit Union's are not on the credit bureau list and work on the individual's history with them rather than their ratings with other institutions. If your borther has a credit union account he might be better off applying for a car loan there. some iof the larger ones are offering very good rates. Also most car finance agreements tend to be hire purchase agreements so the car isn't his till the last payment. can't sell it dispose of it etc.. if he loses his job and can't afford payments they can repossess the car, sell for far less than its value and then come back to him for whatever's still owed on the agreement. I personally would try to aviod hire purchase agreements. if your brother hasn't got a Credit union account - he could open one now start paying in regualarly and 5/6 months down the line they might be prepared to give a loan.

 

[RainyDay]

Has your brother considered not getting another loan straight away? Maybe he could start saving for his next car instead of borrowing (less interest going to the bank, more interest going into his car)?